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Demystifying Tech Layoffs: Distinguishing Fact from Fiction

Demystifying Tech Layoffs: Distinguishing Fact from Fiction

Tech layoffs typically indicate economic turns, internal restructuring, industry consolidation, or shifts toward new technologies that ultimately create new opportunities for tech professionals to upskill and thrive.

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Tech layoffs

Demystifying Tech Layoffs: Distinguishing Fact from Fiction

Layoffs have become an unfortunate reality for many professionals in the technology industry. Recent layoffs from high-performing tech organizations seem to suggest that hiring across the industry faces a cold front. 

However, there’s more to an employment trend than what’s happening behind the scenes at organizations like Microsoft, Google, Amazon, and Meta (Crunchbase). HR shifts to skills-based hiring evaluate candidates based on their fit for individual IT roles. New DEI initiatives create opportunities for underrepresented communities to join growing IT workforces. Accelerated cybersecurity, software engineering, and cloud computing certification programs, like the ones offered at QuickStart, teach the skills modern employers need in weeks instead of years.

Other factors that determine success as an IT professional are well beyond your control. Failed product launches and competitor innovation, for example, can affect your future at a company. Other factors like company mismanagement and incorrect financial projections have less to do with individual work performance and more to do with shifts across the industry.

Let’s explore the truth behind recent tech layoffs and learn more about why now is still the time to make your mark on the tech landscape.

Debunking Tech Layoff Myths

There’s no mistaking the fact that something is happening in the world of tech employment. Hiring booms, massive layoffs, and reversions from remote to in-office work cause many people to rethink their future in technology. This shift allows for several critical misconceptions to affect trends in hiring and education.

Here’s perhaps the most dangerous misconception in the world of tech employment: only underperforming employees are subject to layoffs.

This flawed logic suggests that job performance is the only factor that contributes to job security. In reality, the tech industry has never functioned this way. Of course, job security does improve with great performance. However, the reality of the industry is far more nuanced. 

Layoffs in the tech sector can affect employees across the performance spectrum, from junior staff to senior executives. Most tech layoffs in the past few years are not performance-related at all. Decreases in consumer demand, inflation levels, and stabilization after pandemic hiring spikes are all to blame for job loss in tech (NPR).

Tech layoffs are also not limited to technical departments. While the term "tech layoffs" may evoke images of software developers or engineers being let go, the impact extends to non-technical roles and departments as well. In fact, the majority of layoffs at top-tier tech companies are not tech professionals. Employees in recruiting, marketing, and middle management represent the majority of these layoffs (Forbes).

Layoffs can affect any employee, at any level, in a tech firm.

It’s important to maintain a critical eye when consuming news about tech layoffs. Layoffs in the tech sphere are rarely the result of performance-related releases. Instead, the release of thousands of professionals typically means an internal restructuring and reprioritization. 

That’s why, it’s crucial to consider the broader industry landscape when consuming any news about shifts in the current tech workforce — particularly since layoffs are part of a continual evolution timeline for many tech companies (Computerworld).

Bloat in Hiring within Tech Giants: The Real Reasons Behind Layoffs

The concept of "bloat" is fairly common across tech companies. In some cases, it refers to a list of  software programs that a company has purchased without a need for them all (Medium). In other cases, it can refer to extra code in the software itself (Forbes).

And in the world of tech employment, "bloat" commonly refers to a workforce with more than enough staff to achieve shared goals. Unfortunately, this form of bloat leads to layoff trends.

As tech companies scale, they encounter challenges in staying nimble and entrepreneurial. Direct reporting layers multiply, decision-making processes develop additional steps, and red tape stifles creativity. The result is an organization burdened by unnecessary complexities and inefficiencies, making it increasingly difficult to adapt to evolving market dynamics.

To combat delays in basic functionality, some of the world’s largest tech companies are embracing layoffs at scale, the same way they originally embraced hiring at scale. For example, X — formerly known as Twitter — recently laid off 6,000 employees, or an estimated 80% of their total workforce (San Francisco Chronicle). While this measure was considered drastic by a majority of tech pundits, it helped the organization accomplish its original goal: restore faster decision-making and movement in a tech landscape preparing for an AI boom (The Hill).

Setting the Foundation with IT Training

Amongst these layoffs, continuous learning has grown even more important in a volatile tech industry. With the current rate of developing technology, and the continuous need for newly trained tech workers, the right education effectively helps to separate you from other aspiring IT professionals.

Ongoing IT training also transforms you into the solution for the modern digital skills gap. This gap represents the disparity between the demand for skilled tech professionals and the availability of qualified talent (Wiley). When a tech organization faces a digital skills gap, it can pose a significant obstacle to organizational growth and innovation.

For as much as the digital skills gap can threaten a tech organization's future, it creates all sorts of new opportunities for tech professionals of all backgrounds. To help a company bridge this gap, you’ll need to embrace a mindset of lifelong learning: constantly acquiring new knowledge and mastering emerging technologies to meet the evolving needs of your employer.

At QuickStart, we understand how important ongoing skills development is for a successful, long-term IT career. That’s why our IT certification programs are designed to deliver the skills current employers need, in a fraction of the time you’d need for a traditional degree program.

Investing in ongoing IT training not only transforms you into a more informed employee; it also helps make you more resistant to the effects of a tech layoff. This knowledge helps you position yourself as an invaluable asset to an employer, reducing the likelihood of job insecurity when waves of layoffs hit.

Upskilling for Career Resilience

Upskilling has become a critical strategy for anyone looking to enhance their career resilience amid job uncertainty. In a tech market where positions can shift, upskilling is a personal investment that can yield huge dividends — even if you stay with your current employer for a long time. Acquiring in-demand skills in some of the fastest-growing IT fields only helps to increase your job prospects when it's time for that next step.

In today’s ever-evolving tech market, upskilling isn’t just an option; it’s a strategic imperative. As positions shift and job uncertainty persist, investing in acquiring new skills becomes a personal insurance policy. Whether you’re safeguarding your career within your current organization or preparing for the next step, upskilling pays dividends. 

At QuickStart, we understand the urgency of staying ahead in the tech industry, offering comprehensive training programs tailored to empower professionals for the challenges of tomorrow. From cybersecurity to cloud engineering and data science, staying ahead of the curve ensures you’re not just employable but indispensable.

Here are a few specific tech skills to focus on when upskilling. Depending what you are interested in and your career trajectory, an IT bootcamp in one of these fields can be a strategic option as well:

Upskilling is not only essential for securing entry-level IT roles; it also helps foster long-term career growth and stability. By acquiring in-demand skills and certifications through QuickStart's comprehensive training programs, you can enhance your job prospects, advance your career, and adapt to the evolving demands of the IT industry.

Navigating Uncertainty within the Tech Industry

Navigating uncertainty within the tech industry can be a daunting task, particularly if you're expecting, or just received, news about a layoff at your company. However, there are practical strategies and mindset shifts that can help you overcome these challenges with resilience and confidence.

Gwen Gayhart, QuickStart’s Director of Career Services has some great advice when going through the job search process:

“Given that 70% (or more) of jobs are filled through networking, it’s more important than ever to build and tap into your connections, both online and off.  Make sure your LinkedIn profile reflects the problems you can solve, and — perhaps most importantly right now — engage, engage, engage!  It’s not enough to just exist on LinkedIn.  You need to join groups and build relationships.  Investing time finding  ways to help others builds social capital that tends to come back to you in spades.”

Here are a few steps to accomplish this task:

  • Update your resume and LinkedIn profile: Take this opportunity to refresh your resume with your most recent accomplishments, skills, and experiences. Ensure that your LinkedIn profile is up-to-date and reflects your professional brand accurately. Highlight any relevant certifications, projects, or achievements that demonstrate your expertise and value to potential employers.
  • Build and expand your professional network: Networking is crucial in times of uncertainty. Reach out to former colleagues, mentors, industry peers, and alumni to inform them of your situation and seek advice or opportunities. Attend industry events, webinars, and online forums to expand your network and stay connected with the latest trends and job openings.
  • Explore alternative career paths: Consider exploring alternative career paths or industries where your skills and experiences may be transferable. Be open to exploring freelance, consulting, or remote work opportunities that align with your expertise and interests. Keep an open mind and remain flexible in your career trajectory.
  • Manage emotions and stress: Dealing with uncertainty can take a toll on your mental and emotional well-being. Practice self-care strategies such as exercise, meditation, and hobbies to alleviate stress and maintain a positive outlook. Lean on your support system of friends, family, or mental health professionals for guidance and emotional support during challenging times.
  • Set realistic goals: Break down your career goals into manageable steps and take action towards achieving them. Set realistic timelines and milestones to track your progress and celebrate small victories along the way. Stay focused on your long-term vision while remaining flexible in your approach to achieving it.

Setbacks are temporary, even when they feel permanent. Take each new day as an opportunity to make yourself even more valuable in the tech field, no matter which unique skills you bring to the table.

Technology Job Growth: Putting Recent Layoffs in Context for Overall Cycle

Recent data suggests that the tech industry is currently experiencing a period of growth and innovation, fueled by advancements in areas such as artificial intelligence, machine learning, and data analytics (EY). When these shifts occur, a layoff cycle typically comes before a massive hiring cycle - when companies shift their attention to newly-emerging technologies.

One factor contributing to these cycles is economic recessions. During economic downturns, businesses may scale back on hiring or implement cost-cutting measures, leading to layoffs across various industries, including tech. Industry consolidation, mergers, and acquisitions can also result in redundancies and workforce reductions as companies streamline operations and eliminate overlapping roles.

Disruptive technologies also play a significant role in shaping employment trends within the tech industry. Innovations such as artificial intelligence, automation, and the internet of things can disrupt traditional business models and job functions, leading to workforce restructuring and layoffs in certain sectors while creating new opportunities in others.

However, predictions for the future of the tech industry remain impressively strong. Employment for computer and information research scientists, one of several key IT positions, is forecasted to grow 23% through 2032 (BLS). Employment forecasts for information security analysts are even brighter: the position should grow 32% over the next eight years (BLS).

Importance of Community and Career Services Support

Tech layoffs can feel jarring. However, it’s important to understand the recent layoffs in the context of historical hiring and release cycles, periods of rapid growth followed by downturns, along with layoff misconceptions. 

If you are in the midst of career uncertainty, whether it be job layoffs or the fear of a layoff, you’re not alone. Aligning yourself with the right community and job resources can provide the confidence and connections you need for a meaningful, rewarding career.

Here are a few destinations for more support as you navigate the current tech environment:

  • Online communities and support groups: Joining online communities and support groups can provide a sense of camaraderie and solidarity with others facing similar challenges. QuickStart's Prentus community, through our Career Services Program, offers a platform for individuals to connect with peers, share experiences, and access valuable resources and guidance from industry experts.
  • Professional networks: Platforms like LinkedIn offer opportunities for networking and professional development. Participating in discussions, joining relevant groups, and reaching out to connections can lead to job leads, mentorship opportunities, and emotional encouragement during difficult times.
  • Proactive seeking advice: You can find common ground with others simply by sharing your story. This provides the chance to help others, dialogue about the trends you’re seeing, and pursue untapped career opportunities not shared among the public.

The power of community is your best defense in a world of expanding tech layoffs. Even though layoffs typically precede hiring booms in the tech industry, the process can still lead to feelings of burnout and self-doubt. Remember: tech layoffs are rarely the sign of job performance issues. Instead, they can occur because of shifts in a competitor landscape, product portfolio, even sustainability concerns.

Here at QuickStart, learn more about the tech employment space, pursue ongoing education, and complete relevant IT bootcamps and IT certification courses to upskill your way to the tech career you know you deserve.

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